Read Why MoffettNathanson Slashed Walt Disney Price Target By 6%

MoffettNathanson analyst Michael Nathanson lowered the price target on Walt Disney Co DIS to $165 from $175 and reiterated a Neutral rating on the shares. The price target implies an upside of 8%.
Nathanson's FY22 free cash flow estimate of $1.9 billion after the Shanghai adjustment is "a significant decrease" of over 60% from his prior estimate of $5.1 billion following his annual Disney 10-K review and taking into account management commentary.
He has also lowered his out-year free cash flow projections to account for higher working capital drags from elevated programming spending.
Disney CEO Bob Chapek has an opportunity to set the company on a new path. Still, the COVID-19 pandemic has dealt the new CEO a "very difficult hand," and Disney's significant strategic alternatives are "rather limited at this point," Nathanson added.
Price Action: DIS shares traded lower by 0.24% at $151.90 in the premarket session on the last check Wednesday.